Ohio Starts Holding Wind Industry Accountable
In-state renewable energy mandate eliminated in the Buckeye State; still exists in Michigan
Ohio Gov. John R. Kasich signed legislation that ends Ohio’s in-state wind energy mandate and also signed a measure to keep wind turbines farther away from neighboring property.
Gov. Kasich signed Senate Bill 310 on June 13. Wind plants in Ohio, unlike in Michigan, will now have to try to compete with cheaper wind generated electricity from states where wind power is produced more efficiently. In addition, the legislation freezes the state’s overall renewable energy mandate for two years, while lawmakers re-evaluate it.
Michigan still has an in-state wind mandate and the state Legislature has not made any serious effort to end the anti-competitive requirement.
Gov. Kasich has also signed House Bill 483, which establishes that the distance an industrial wind turbine must be from property is measured from the property line instead of the foundation of the home. This begins to take into account manufacturer recommendations that turbines be located at least 1,500 away from housing structures. Wind companies often aim for distances less than what wind turbine manufacturers recommend, causing property value issues and hazards to people when turbines are placed too close.
"At one industrial wind plant in Ohio only 12 of 152 turbines would have been allowed if the new distance regulations had been place when the facility was built," said Kevon Martis, director of the Interstate Informed Citizens Coalition, a non-profit organization that is concerned about the construction of wind turbines in the region. "That's an example of how significant this change is."
For all practical purposes, the term “renewable energy” in Ohio and Michigan has come to mean electricity generated by wind turbines. Michigan and Ohio both are considered relatively poor wind power states. Nearby states Iowa and Minnesota produce electricity generated by wind for a fraction of the cost of wind generated electricity in the Buckeye and Wolverine states.
"A difference between Ohio and Michigan is that wind turbine regulations are set at the state level in Ohio but locally in Michigan," Martis said. "If these kind of new regulations were put in place throughout Michigan, wind developers would face the need to negotiate directly with property owners instead of seeking out agreements with non-participating parties.
"Kentucky has recently adopted even stricter wind turbine regulations than those now in Ohio," Martis continued. "So Kentucky and Ohio have now basically said ‘no’ to wind. We’re hoping Michigan will be next."
In-state wind mandates cannot only lock in inefficient and costly production of electricity, they also appear to violate the Commerce Clause of the U.S. Constitution.
Michigan's in-state mandate requires that 10 percent of the state's electric energy be produced by in-state renewable sources by 2015 and that the law be reviewed in 2015. There is no provision in Michigan's law for measuring emissions to determine the mandate's impact, if any, on the environment.
The American Wind Energy Association did not respond to request for comment.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Repeal Post and Hold Alcohol Rules
Beer and wine wholesalers gain, consumers lose
(Editor’s note: These are remarks delivered recently by Michael LaFaive, director of the Morey Fiscal Policy Initiative, to the Michigan Liquor Control Commission.)
Thank you Commissioners. My name is Michael LaFaive and I am director of the Morey Fiscal Policy Initiative for the Mackinac Center for Public Policy.
I am here today to exercise my right to request the partial rescission of two rules, R.436.1625 (1-4) and R.436.1726 (1-2). These are commonly referred to as "post and hold" rules. As you know, these rules mandate posting of price schedules for beer and wine and the holding of those prices for a length of time depending on the product.
Research shows that these rules suffocate competition to the benefit of narrow special interests, such as Michigan's beer and wine wholesalers, and do so at the expense of consumers.
In fact, one working paper published in 2010 and titled, "State Regulation of Alcohol Distribution: The Effects of Post & Hold Laws on Consumption and Social Harms," found that such laws increased price of beer and wine by between 6.4 percent and 30 percent, depending on the product.
I have for each of you the copy of a letter that I have formally mailed to Chairman Deloney, and an essay I published in 2012 titled, "Unnecessary State Rule Enriches Crony Capitalists."
Thank you for your time and attention in this matter.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
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